Thrifty Banker
  • Politics
  • Business
  • World
  • Investing
  • Politics
  • Business
  • World
  • Investing

Thrifty Banker

Business

Mortgage rates hit a 22-year high as demand drops

by August 18, 2023
August 18, 2023
Mortgage rates hit a 22-year high as demand drops

Mortgage rates rose for the third straight week last week, matching a 22-year high. As a result, mortgage demand dropped as well.

Total mortgage application volume was 29% lower than the same week one year ago, according to the Mortgage Banker’s Association’s seasonally adjusted index.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 7.16% from 7.09%, with points decreasing to 0.68 from 0.70 (including the origination fee) for loans with a 20% down payment. That was the third straight weekly increase and the highest level since October 2022, which also matches a high level seen in 2001.

“Treasury rates were elevated again last week following mixed data on inflation and more indication of resiliency in the economy, which may pose a challenge to the Federal Reserve’s efforts to lower inflation,” said Joel Kan, an MBA economist, in a release.

As a result, mortgage demand from homebuyers was essentially flat week to week and 26% lower than the same week one year ago. The adjustable-rate share of these applications did rise slightly, as ARM loans offer slightly lower rates, and buyers are looking for a break where they can find it.

Applications to refinance a home loan fell 2% for the week and were 35% lower than the same week one year ago. Last year the 30-year fixed was 5.45%, but the year before it was in the 3% range, so there are very few borrowers who can now benefit from a refinance.

While overall mortgage demand is dropping, applications for a mortgage to purchase a newly built home are rising, up 35.5% in July year over year, according to a separate MBA report released Tuesday. The Federal Housing Administration share of those applications hit the highest level since May 2020 and has increased in four of the last five months. FHA loans offer low down payment options and are thus popular with first-time homebuyers.

“This increasing trend in the FHA share is indicative of more first-time buyers looking to new homes as an option, given the lack of for-sale inventory among existing homes and challenging affordability conditions,” added Kan.

Mortgage rates continued to climb this week. On Tuesday, the average rate on the 30-year fixed hit 7.26%, according to Mortgage News Daily, the highest since last November.

More from CNBC:

Look inside the $44.5 million Tuscan-style mega villa perched 2,000 feet above MalibuHomebuilder sentiment drops sharply, as mortgage rates surge over 7%Airlines can’t add high-end seats fast enough as travelers treat themselves to first class

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
‘Lazy girl jobs’ are trending in rally against burnout culture
next post
Georgia state senator moves toward impeaching DA Fani Willis over Trump charges

Related Posts

Big banks have drastically cut overdraft fees, but...

February 12, 2024

What the Ticketmaster-Live Nation lawsuit could mean for...

May 25, 2024

CNN names former New York Times CEO Mark...

August 31, 2023

Paramount+ to increase prices for its streaming plans

June 25, 2024

Social Security recipients will see a cost-of-living increase...

October 13, 2023

FTC reveals new rule targeting auto dealership scams

December 14, 2023

The economy is doing better than expected. Your...

January 26, 2024

Super Bowl ads beckon up to $8 million...

January 31, 2025

Returning a holiday gift? It could end up...

January 8, 2024

Silver lining for consumers: Food price growth has...

May 15, 2024

    Sign up for our newsletter to receive the latest insights, updates, and exclusive content straight to your inbox! Whether it's industry news, expert advice, or inspiring stories, we bring you valuable information that you won't find anywhere else. Stay connected with us!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Popular

    • 1

      Top 10 Countries for Natural Gas Production (Updated 2024)

      April 6, 2024
    • 2

      Understanding Lithium Mineralogy from an Investment Perspective

      September 12, 2023
    • 3

      US Capital Global Facilitates $50MM Financing to Accelerate Charbone Hydrogen’s North American Expansion

      June 6, 2025
    • 4

      Israel confirms it is arming Hamas rivals in operation opposition calls ‘complete madness’

      June 6, 2025
    • 5

      A GOP operative accused a monastery of voter fraud. Nuns fought back.

      January 3, 2025
    • 6

      Crypto Market Recap: Strategy Eyes US$1B Raise for Bitcoin Push, UK Regulator Reverses ETN Ban

      June 6, 2025
    • 7

      China’s aircraft carriers send message in the open Pacific for the first time – and bigger and more powerful ships are coming

      June 16, 2025

    Categories

    • Business (1,053)
    • Investing (2,079)
    • Politics (2,977)
    • Uncategorized (20)
    • World (3,387)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: thriftybanker.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thriftybanker.com | All Rights Reserved